Chapter 4 : Unofficial Timber Rent Appropriation in Sarawak (Part 4 - Taib Mahmud)

Taib Mahmud concessions

It is a commonly thought that 1.6 million hectares in timber concessions are held by Chief Minister Taib Mahmud and his relatives and political allies (New Sunday Times 1987).   In my own calculations, I found almost one million hectares in Taib family timber holdings, spread across 20 concessions.  This degree of direct corporate control by a state leader over a market share of this size is unique among the cases studied in  this dissertation.  A search of the articles of incorporation of these 20 concessions show directorships and shareholdings awarded to members of the chief minister's family, his proxies, and political supporters including the two largest parties in the Sarawak Alliance, the Chinese SUPP and the chief minister’s own party, the PBB.

A tense moment came while I was reviewing the list of managers and equity holders in Taib Mahmud timber concessions with a member of the PBB, State Assemblyman Aidan Wing. Until this interview took place, relations had been quite amicable between Wing and myself. Here we were, three days into a relaxed journey whose highlights included meeting Wing's lovely family, and then flying to the small coastal town of Mukah, the epicenter of the Melanau. The first two days of the journey, Wing had treated me to dinner with the male elders of Mukah - featuring the delicacy of raw sago worms - and a day-long drive along the coast with Baijuri Kipli (about whom, see the discussion of the KTS group’s Malkita timber concession in Table 4.11). However, when I got around to asking Wing about holders of managerial and equity positions in the Chief Minister’s timber concessions, Wing’s answers, quite precise at first, became fewer and farther between, and increasingly vague. Finally, he stopped answering altogether, and we were left in silence. Wing looked down for quite a long time, and looked up into my eyes and asked, without smiling, "Where did you get his list? These are all PBB companies" (6 June 1997 interview). After this, although our trip together continued for another five days, Wing kept me at arm's length. Entire days went by without my seeing him once. Relations between us were never the same.

Table 4.6            Timber concessions controlled by Sarawak Chief Minister Taib Mahmud in which his family members, friends, proxies or political allies are board members or shareholders.

Name of timber concession	Name of board member or shareholder	Position in or percentage of shares held in company	Relationship to current chief minister, source of information.
Bumi Hijau, 26,000 hectares	Douglas Sallang	Director	Former Senator (28 May 1997 interview with a Sarawak journalist, 6 June 1997 interview with State Assemblyman Aidan Wing).  PBB nominee (12 August 1997 interview with James Chin).
Gayasar, 25,006 hectares	Abang Abdul Karim Tun Abg. Hj. Openg	Director	Elder brother of one of the chief minister’s most important ministers, Abang Johari, the Minister Industry (28 May 1997 interview with a Sarawak journalist).
Kedasa, 41,000 hectares	Bok Kok Pheng, Wee Ai Choo	Directors	Nominees for SUPP, one of four parties that make up the Sarawak Alliance (12 August 1997 interview with James Chin).
Pasin, size unknown; Rinki, 33,300 hectares	Wahab bin Haji Dollah, Assistant Minister for Infrastructure Development (28 May 1997 interview with a Sarawak journalist).	Director and 50 percent shareholder	Known as "Giant Killer" because he defeated former Chief Minister Tun  Rahman in the state assembly elections in the aftermath of  the 1987 Ming Court affair.  Acted on the CM's behalf in an attempt to obtain editorial control of the Borneo Post, where he is now a shareholder. Together with the chief minister's first cousin, Hamid Sepawi, Dollah owns 25 percent of parent company of Utusan Sarawak newspaper.  He serves as political lieutenant of Taib, by controlling the political activities, and seeing to the material needs, of eight PBB state assemblymen.   He is a strong public proponent of continued Melanau leadership in Sarawak.  Dollah is said to have been awarded eight timber concessions by Taib (Sayottaib 2001: sulit 6, dokumen 1-4), although this study identified only five.  Dollah makes profits from his timber concessions available to PBB during election time (10 June 1997 interview with Kueh Yong Ann).
Pasin, size unknown	Dollah Ahmat Usop	Director	A relative of Wahab Dollah (6 June 1997 interview with State Assemblyman Aidan Wing).
Pasin, size unknown	Dolek bin Hj Mit	Director	A close friend and associate of Wahab Dollah (28 May 1997 interview with a Sarawak journalist) and/or Wahab Dollah’s cousin (6 June 1997 interview with State Assemblyman Aidan Wing).
Pasin, size unknown	Sharkawi Haji Bohari	Director	Former associate of Wahab Dollah.  A former official of Sarawak Economic Development Corporation (7 June 1997 interview with State Assemblyman Aidan Wing).  A “Taib nominee” (12 August 1997 interview with James Chin).

Table 4.6 (continued)    Timber concessions controlled by Sarawak Chief Minister Taib Mahmud in which his family members, friends, proxies or political allies are board members or shareholders.

Name of timber concession	Name of board member or shareholder	Position in or percentage of shares held in company	Relationship to current chief minister, source of information.
Rajang Wood, 309,575 hectares Raplex, 72,251 hectares	Abdillah Bin Haji Abdul Rahim	Director	A former General Manager of Sarawak Timber Industrial Development Corporation (18 August 1997 interview with Raphael Pura).  Federal Senator (4 June 1997 interview with a state assemblyman, and 6 June 1997 interview with State Assemblyman Aidan Wing).
Raplex, 72,251 hectares	Datuk Haji Bujang Mohd. Nor	Director	Former State Secretary of Sarawak under Chief Minister Taib, from the early-to-middle 1980s (26 May 1997 interview with a reliable and informed academic).  Former State Financial Secretary.  Former chair of Bakun Hydroelectric Electric Corporation (28 May 1997 interview with a Sarawak journalist).  Current Executive Chairman of Harwood.  His position on the board of Raplex may be a golden handshake for having held one or more of the posts discussed above (12 August 1997 interview with James Chin).
Rinki, 33,300 hectares	Abdul Hamid Haji Sepawi	Director and 50 percent shareholder	First cousin to the chief minister, and an important business figure in the CM’s family (6 June 1997 interview with State Assemblyman Aidan Wing). Abdul Hamid is “holding part of the money” for the chief minister (11 June 1997 interview with former Assistant Minister of Finance Patau Ubis).
Sarako, 36,000 hectares; Sarimas, 32,000 hectares	Bustari Yusof	Director and 55 percent shareholder; Director	Although Bustari denies he is a nominee of the chief minister, one source insists that he is.  Those who wish to settle the matter for themselves can go to Bustari’s reported watering hole, the Margarita Lounge at the Kuching Hilton (12 August 1997 interview with James Chin).
Sarako, 36,000 hectares	Dulang Holdings	3 percent shareholder	A company run by Bustari Yusof (13 June 1997 interview with well-placed and knowledgeable source in Sarawak).
Seatex Plantations, 30,000 hectares	Hj. Osman Tan Sri Marzuki	Director, 17 percent shareholder	Son of a former acting Governor of Sarawak (28 May 1997 interview with Jack Wong).

Table 4.6 (continued)    Timber concessions controlled by Sarawak Chief Minister Taib Mahmud in which his family members, friends, proxies or political allies are board members or shareholders.

Name of timber concession	Name of board member or shareholder	Position in or percentage of shares held in company	Relationship to current chief minister, source of information.
Seatex Plantations, 30,000 hectares	Hj Khalid Tan Sri Marzuki	Director, 21 percent shareholder	Not only the son of a former acting Governor of Sarawak, but also a former Political Secretary to Chief Minister Taib (28 May 1997 interview with a Sarawak journalist).  The current Political Secretary to Minister of Industry Abang Johari, one of the most powerful members of the current cabinet (9 June 1997 interview with Sim Kwang Yang).
Timplex, 31,500 hectares	Ting Ming Hoi, former Sibu senator, now deceased.	Director	James Chin says that Ting Ming Hoi is a "SUPP nominee" (12 August 1997 interview).
Timplex, 31,500 hectares	Tai Sing Chii	Director	S.K. Lau writes that “when he was having trouble raising political funds in 1970, Tun Abdul Rahman Yakub turned his target to Tai Sing Chii, owner of Pan Sarawak, and hoped that he could ‘borrow’ three units of outboard engine and a few hundred khatis of rice from the latter.  Later . . . staff of the company disclosed that Tai Sing Chii had donated about 3,000 dollars to Yakub.  So after the latter came to power, he repaid Tai Sing Chii for his donation for more than 3,000 times of the amount donated.  As a whole, Tai Sing Chii had made a wise decision.  Yakub could still remember him several years after he stepped down from the post of Chief Minister.  One day, when we met at Singapore . . . Airport, he still praised . . . Tai Sing Chii. . . .  After Yakub lost his power, all of us thought Tai Sing Chii had lost his strong backing also.  It seemed that he was finished.  But he turned to support Taib.  Since then, he got richer and richer” (Lau 1995: chapter 18, page 1).
Timplex, 31,500 hectares	Tuan Haji Abdul Rahim Tai	Director	Brother to deceased SUPP nominee Ting Ming Hoi (19 July 1997 interview with Chiew Chin Sing).
Timplex, 31,500 hectares	Y.M Tunku Zuhri Bin Tunku Zakaria	Director	Member of one of the royal families of Sarawak (28 May 1997 interview with a Sarawak journalist).
Timplex, 31,500 hectares	Abang Mohd. Bin Abang Sharkawi	Director	Son of a former Resident of Sarawak (6 June 1997 interview with State Assemblyman Aidan Wing).
Timplex, 31,500 hectares	Awang Jaya bin Pengiran Tajuddin	Director	Former treasurer of PBB's Bintulu branch (19 July 1997 interview with Chiew Chin Sing).